Russia closes gap with the United States in Bitcoin mining

Russia's advances in Bitcoin mining suggest that it could dethrone the United States in this sector

The United States currently remains at the top of Bitcoin mining. However, this situation could change due to the turbulence in this sector, in addition to the banking crisis, and catapult Russia to the first place.

China remained the main country in the Bitcoin mining sector; then the United States positioned itself. But the current circumstances related to the energy crisis, the bankruptcy of several important banks inside and outside the country, as well as state regulations on mining, pose an adverse scenario.

In this sense, Russia is advancing quickly according to the Russian company BitRiver, which operates cryptocurrency mining facilities with hydroelectric power.

From the company, they point out that “Russia’s mining capacity reached 1 gigawatt in January-March 2023, placing it in second place for the first time.”

Igor Runets, CEO of BitRiver, stated that the country’s move up the rankings “comes as the pace of mining in the United States slows due to rising electricity prices and the abolition of tax incentives.” Additionally, he indicated that the miners acquired the equipment on credit and now there are bankruptcy cases that destabilize the sector.

To this panorama we must add that in this year’s budget, the Treasury Department proposed a special tax of 30 % on the cost of feeding crypto mining farms.

Russia, on the other hand, shows a more favorable scenario towards bitcoin miners. Putin’s government recently reported that it will “subsidize a new 100-megawatt mining center in eastern Siberia.” According to BitRiver, said center will be exempt from paying land or property taxes. Additionally, you will have the benefit of a reduced rate of income tax and electricity will be subsidized at 50 % of the current rate.


Source: criptocity

(Reference image source: Artem Beliaikin, Unsplash)

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